CryptoNews

DPRK’s $1.4B Laundering Exposes Crypto Industry Failures, ZachXBT Says

On Tuesday, onchain investigator ZachXBT raised alarms about the growing prevalence and severity of exploits within the cryptocurrency sector, highlighting the recent Bybit breach as a critical example.

‘This Industry Is Unbelievably Cooked,’ Says Investigator

His latest commentary delivers a scathing assessment of the industry’s approach to security, regulatory compliance, and efforts to combat illicit transactions. In a post shared via his Telegram channel, ZachXBT criticized the sector’s reluctance to enforce internal accountability and pointed to persistent gaps in existing safeguards, arguing that current practices fail to address systemic vulnerabilities.

“Spending long hours helping freeze funds for the Bybit hack has been eye opening,” ZachXBT wrote. “This industry is unbelievably cooked when it comes to exploits/hacks and sadly [I don’t know] if the industry is going to fix this itself unless the government forcibly passes regulations that hurt our entire industry.” He continued:

Several ‘decentralized’ protocols have recently had nearly 100% of their monthly volume/fees derived from DPRK and refuse to take any accountability.

The onchain sleuth further added that centralized exchange (CEX) platforms are often slow to respond to suspicious transactions. He also criticized existing compliance measures, arguing that Know Your Transaction (KYT) systems are easily bypassed and Know Your Customer (KYC) requirements primarily expose regular users to data breaches rather than stopping bad actors.

He warned that governments may impose strict regulations—potentially harming the industry, and the sector is unlikely to address these vulnerabilities on its own. “DPRK laundering $1.4B from the recent hack has only exposed how broken it is,” he concluded. Additionally, ZachXBT commented on the recent Hyperliquid whale which has been a hot topic in the community over the last week.

The trader has been one of the top Hyperliquid traders on the leaderboard and yesterday, the entity made more than $9 million by shorting bitcoin ( BTC). In response to an X post about the subject, ZachXBT wrote, “It’s funny watching CT speculate on the ‘Hyperliquid whale’ when in reality it’s just a cybercriminal gambling with stolen funds.” When asked to name the culprit, ZachXBT added:

We’ll see it’s just not enjoyable posting investigations on X/Twitter anymore.

Source: Bitcoin

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